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China Retaliates, No Sign of Trade War Ending

On Friday, August 3rd, China announced that they will impose their own set of tariffs on $60 billion worth of U.S. goods if President Trump moves forward with his plan to further increase tariffs. Last week, the Trump administration announced they are considering an increased tariff rate on List 3 items from 10% additional duty to 25%, hiking duties on an additional $200 billion worth of imports from China.

China shows no sign of backing down from the on-going trade war, vowing to retaliate by increasing duties anywhere from 5% to 25% on an additional 5,207 U.S. imports, including everything from honey and coffee to chemicals and snow blowers. The Chinese Taxation Committee announced four separate lists for each rate, but no official product list has been published.

List 1: 2,493 products subjected to 25% increase

List 2: 1,078 products subjected to 20% increase

List 3: 974 products subjected to 10% increase

List 4: 662 products subjected to 5% increase

The Trump administration has not yet confirmed their proposed tariff hike, but if implemented, the tariffs would cover $250 billion worth of China’s annual import volume to the US.

Shapiro will continue to monitor the situation and provide updates as they become available.